Solana (SOL) Price Drops Below $165 as Traders Panic, But Smart Money Buys the Dip

SOL has been getting hammered lately, falling below the key $165 level and freaking out a lot of traders. But here's the thing – while everyone's panicking, the smart money is doing something completely different.

Solana might be tanking on the charts, but long-term holders clearly didn't get the memo. Instead of panic-selling, they've been stacking coins with confidence. And with most recent sellers locking in losses, the worst may already be behind us.

SOL Holders Keep Buying Despite Price Drop

While Solana's price has been falling, its long-term holders aren't backing down. Actually, they're doing the opposite. Glassnode data shows a massive 102% surge in Hodler Net Position Change since July 30th – that's a big deal.

This metric tracks how much long-term investors are buying or selling over 30 days. A 102% jump? That means these guys are loading up big time. While retail traders are selling in fear, the experienced players are quietly moving more coins into cold storage. That's usually a sign they think we're near the bottom.

SOL Sellers Are Taking Heavy Losses

Here's where it gets interesting. SOL's Realized Profit/Loss Ratio crashed to just 0.15 on August 2nd – the lowest it's been in 30 days. What does that mean? Simple: most people selling right now are losing money big time.

Historically, when you see this kind of capitulation (fancy word for "giving up"), it usually happens near market bottoms. Think about it – if fewer people are willing to sell at a loss, there's less downward pressure on the price. That could mean SOL is finally running out of sellers and might be ready to bounce back.

SOL Price Shows Signs of Recovery

After getting crushed for days, SOL is finally showing some life. The latest daily candle suggests the bleeding might be slowing down, even though we're still stuck below $165.

The RSI is sitting at 41.65, which is getting close to oversold territory – that usually means a bounce could be coming. Plus, the On-Balance Volume (OBV) has stopped falling after weeks of decline, showing that selling pressure is cooling off.

Look, it's still too early to call this a full comeback, but the signs are there. Sellers seem to be getting tired, and if sentiment shifts, we could see SOL make a solid recovery. With long-term holders buying the dip and weak hands already shaken out, the stage might be set for a rebound.